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QUESTION 12 Assume that the flowngnfmaton e bdssues of chrs companyr Face value Bond term Stated interest rate Market interest rate ssue date Interest payment

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QUESTION 12 Assume that the flowngnfmaton e bdssues of chrs companyr Face value Bond term Stated interest rate Market interest rate ssue date Interest payment dates une 30 and December 31 each year (paid semiannually) The total amount of interest to be paid over the life of the bonds is: S800,000 15 years 1296 896 July 1, 2012 $1,440,000. $960,000. S720,000. $1,200,000. none of the above. QUESTION 13 Assume that the following information is relevant for one of the bond issues of Chris Company: Face value Bond term Stated interest rate Market interest rate Issue date Interest payment dates June 30 and December 31 each year (paid semiannually) 5800,000 15 years 12% 896 July 1, 2012 The total amount of interest expense to be recognized on December 31, 2012 (the first interest payment date) using the straight line interest method is: 52.549.12. $65,584.96 $72,737.28. 43.056.64. none of the above. QUESTION 14 Assume that the following information is relevant for one of the bond issues of Chris Company: Face value Bond term Stated interest rate Market interest rate Issue date Interest payment dates June 30 and December 31 each year (paid semiannually) $800,000 15 years 1296 896 July 1, 2012 The amount to be repaid to bondholders on the maturity date is: $2,065,952. $800,000 $400,000 $720,000. none of the above

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